Director salary vs dividends calculator

Compare the personal tax you'd pay taking your pay all through PAYE versus a base salary topped up with dividends.

Your details

Your entitlement

Personal tax saved with salary + dividends

£8,415.12

Option A: All through PAYESalary £80,000.00
Take-home£56,957.40
Income tax-£19,432.00
Employee NI-£3,610.60
Total personal tax28.8% of your pay£23,042.60
Option B: Base salary + dividendsSalary £12,570.00 + dividends £67,430.00
Take-home£65,372.53
Income tax on salary-£0.00
Employee NI-£0.00
Dividend tax-£14,627.48
Total personal tax18.3% of your pay£14,627.48
Comparison
Difference in take-home£8,415.12
Per month£701.26
  • • Personal tax only: income tax, employee NI and dividend tax. Company taxes (employer NI, Corporation Tax) are not included.
  • • 2026/27 rates for England, Wales and NI; dividend rates 10.75/35.75/39.35% with a £500 allowance.
  • • Assumes no pension contributions, student loan or other income.

Important: This calculator provides estimates for informational purposes only and does not constitute regulated financial, legal, or tax advice. Read full disclaimer